You done your due diligence and found the right SaaS (software as a service) application to meet your long term goals and make your business run more efficiently. The annual fees of the SasS product fall within you budget and now you are ready to get a firm proposal. Now here is what you should look for when you review the statement of work (SOW).
Set up fees: Some companies charge set up fees and some don’t. They are usually looking for a 3 year commitment to waive these set up fees. You are motivated to stay with your SaaS provider for a while because of the effort involved in change solutions. Ask for a 1 year check in where both parties can exit the contract if things are not working out.
Migration Fees: You probably have some data that you want to move into your new application. Moving data is a bit like moving your office. It is painful, involves clean up and you need to find the proper spaces for everything. Migration can cost more than a year of SaaS fees. Sometimes the SaaS provider will include it in the SOW or other times they will point you to an implementation partner. Sometimes it is cheaper to archive data than move it. Know what data you want to move and how you want to use it.
Change Management Costs: Don’t forget that you will need training and in some cases significant changes to your business processes. Again the SaaS provider may be able to help or point you to an implementation partner. Make sure their solution works within your corporate culture. Limit training to small digestible time frames. Know that this will be just as much work on your part as the SaaS provider.
Do you need help evaluating SaaS products or contracts? Contact Gizmo Global for a free consultation.
Question: What do you look for in your SaaS contracts?
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